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UEM Sunrise Announces Financial Year End 2013 Results
KUALA LUMPUR, 25 February 2014 – UEM Sunrise Berhad (“UEM Sunrise”) today reported a strong performance for its financial year ended 31 December 2013 (“FY2013”) with total revenue of RM2.4 billion improving by 26% compared to the financial year ended 31 December 2012 (“FY2012”) revenue of RM1.9 billion. Profit after tax and minority interest (“PATAMI”) increased by 29% from RM448.3 million to RM579.1 million in FY2013 whilst its return on equity (“ROE”) improved to 10.2% from 8.8% in FY2012.
Revenue growth in 2013 was driven mainly by land sales to Liberty Bridge Sdn Bhd, Southern Marina Development Sdn Bhd and Ascendas Land (Malaysia) Sdn Bhd, while revenue from core property development activities remained steady at approximately RM1.5 billion. PATAMI increase was in line with the higher land sales revenue. There was also a significant increase in profit contribution from the various joint ventures and associates, most notably from Horizon Hills. Other contributors include Somerset Puteri Harbour, a joint venture project with United Malayan Land Berhad and our associate, Setia Haruman Sdn Bhd, the master developer of Cyberjaya.
Total property development sales increased by 47% to RM3.0 billion in FY2013 from RM2.0 billion in FY2012 with RM1.9 billion (62%) attributable to projects in Nusajaya, in particular Teega @Puteri Harbour, East Ledang and Nusa Idaman whilst the remaining RM1.1 billion (38%) was contributed by projects in the Central Region, in particular Arcoris Mont’Kiara and Residensi 22. Unrecognised revenue as at 31 December 2013 stood at RM3.4 billion compared to RM2.3 billion a year earlier.
Dato’ Izzaddin Idris, Executive Director of UEM Sunrise said that the increase in PATAMI reflected the Company’s commitment to deliver better returns to shareholders. “Although we fell slightly short of the targeted revenue growth of 30% for 2013 as outlined in our headline key performance indicators (“KPI”), the achievement of revenue growth by 26% is commendable”.
Dato’ Izzaddin further added that UEM Sunrise’s performance throughout last year were all geared towards sustainability. “UEM Sunrise launched eight project phases both in Nusajaya and Klang Valley in 2013, including Block A of Residensi 22, a residential tower in Mont’Kiara which is almost 80% sold as at end of January 2014. We also handed over a total of approximately 1,500 units of completed properties in East Ledang, Nusa Idaman, Nusa Bayu, 28 Mont’Kiara, Symphony Hills and Quintet Phase 1 in Vancouver to buyers last year. Strategically, the Company is also looking to create international presence by acquiring two parcels of lands in Melbourne, Australia for the development of high-rise premium residential towers”.
UEM Sunrise is proposing a first and final single tier dividend of 4.0 sen per ordinary share of RM0.50 each for the financial year ended 31 December 2013 compared to 3.0 sen per ordinary share the year before.
Moving forward, Dato’ Izzaddin said that UEM Sunrise will strive to further improve performance in 2014 with new headline KPI targets of 25% revenue growth, 10% PATAMI growth and ROE of 10%. “For 2014, we have planned new property launches with a total gross development value of around RM3.8 billion. This would include new phases of our ongoing projects such as East Ledang, Nusa Idaman and Nusa Bayu; as well as new projects such as D’Estuari, Almas @Puteri Harbour and Serene Heights in Bangi. We have also set a total property development sales target of RM3.2 billion for 2014. At the same time, the Group is continuing to explore strategic opportunities to expand our presence and land bank similar to our recently announced collaboration with Kuala Lumpur Kepong Berhad”.